"Yesterday we announced the outcome of the spending review that will be targeted at maximising capital investment to boost economic recovery.

"The spending review also means that, including the allocation that will be made through local government, the budget for affordable housing supply for the next 3 years will be above £600 million.

"Despite the draconian cuts in capital spending imposed by the UK Government, we have shown that investment in new affordable housing can boost our economy through the direct impact on construction and related jobs.

"I have made clear our commitment to deliver 30,000 affordable homes during this Parliament. And today, I am making the commitment that at least two-thirds of these homes will be for social rent.

"I will continue to expect a benchmark of £40,000 subsidy for housing association developments – with higher levels available only where absolutely necessary for priority developments that would otherwise be unviable."